David Rosenthal: belief

Transcript context

…Okay. The lighter weight thing on Apple is, even if they don't try to build their own closed-loop thing, who really cares what's in your wallet when your wallet is your phone? For consumers now, if you're using your phone, in your head, your payment method is your phone. The card underneath it is not terribly important, other than the fact that you need to remember to auto pay it and ideally, it has the one with the best rewards. That's not what most people are thinking, because I think actually, the majority of people don't have rewards-based credit cards. But they loaded some card in there, they forgot about it, and they pay. Apple is actually the means of payment, not the card. Even though it's flowing over their rails, consumers don't think of it that way. I don't know exactly how that will manifest and chiseling away at Visa's value. But it certainly is fair to say that the card network and the card issuer have less of a role in the consumers' mind than they used to based on the fact that we now have mobile payments. Apple Pay and Google Pay along with it are, I think, by many, many, many orders of magnitude, the most successful quasi alternative payment systems that have actually gotten install bases. Google Pay is very popular, too.…

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